Question

Ashish lent Rs 10500 to Sunidhi at 7% per annum simple interest after 5 years Sunidhi discharged the depth by giving a watch and rupees 13000 in cash what is the value of the watch

Answer 1

Answer:

Step-by-step explanation:

The total amount to pay at the end of the tenure is given by the formula,

A = P * (1 + ((Rate of interest * Loan Duration)/100))

A = 10500 * ( 1 + ((7 * 5)/100))

A = 10500 * ( 1 + 0.35 )

A = 10500*1.35

A = Re 14175.

The amount paid in cash is 13000, which makes the value of watch as,

the value of the watch = 14175 - 13000 = Re 1175.